Historically, every time the Fed cuts interest rates, it leads capital in one direction, waiting for the interest rate hike cycle to harvest, without exception.
So when this round of interest rate cuts begins, will the cryptocurrency market rise generally?
Let's first sort out the cryptocurrency market:
1/Denominated in US dollars
2/Legalization is becoming more and more sound, but there is still room for improvement
3/CZ is in prison and released
4/ETF is listed and traded
5/BTC has been sideways for 9 months
Secondly, let's sort out the Fed's monetary policy
1/CPI target 2%. It has not been achieved yet
2/Historical 1-2% interest rate still has sufficient room for regulation
3/It is still shrinking the balance sheet and has not released liquidity on a large scale
4/The general election is about to begin
Summary: Before QE is launched, it is probably difficult for large-scale funds to flow into the cryptocurrency market, unless the legalization process is accelerated + Trump is pro-cryptocurrency after taking office.
The attitude of capital can be seen from the fact that Bitcoin is rising alone, while ETH and Shanzhai are not rising.
In the future, ETH needs to release more positive news to shock the market before it can lead Shanzhai to rise.
The longer BTC is sideways, the more chips will be changed. I believe that in a short time, 70,000 Bitcoin will be the bottom of the stage.
